Washington Paid Family and Medical Leave Program.
The Washington Paid Family and Medical Leave (PFML) Program, which is administered by the Employment Security Department (ESD), provides partial wage replacement benefits to employees on leave for specified family and medical reasons.
Benefits. An eligible employee may access PFML benefits for a qualifying event if the employee worked at least 820 hours during a qualifying year. The 820 hours can be satisfied in one or more positions with one or more employers. An eligible employee can access up to 12 weeks of medical leave or family leave benefits, or up to 16 to 18 weeks of combined medical and family leave benefits in a year. An eligible employee may receive benefits up to 90 percent of their wages, subject to a weekly maximum, which is $1,542 in 2025.
Eligible employees' use of paid leave benefits is based on their need. Depending on the circumstances, an eligible employee may use paid leave benefits in a single continuous period (possibly reaching the maximum allowable benefit period) or may use it intermittently. The minimum claim period to qualify for benefits is eight consecutive hours.
Premiums. The PFML Program is funded through premiums paid by employers and employees. Employers collect the premium on each employee's taxable wages and remit the funds to the ESD on a quarterly basis, which are then deposited into the Family and Medical Leave Insurance Account. The total premium rate for combined family leave and medical leave benefits is established through a statutory formula and adjusted annually by the ESD. The total premium for 2025 is 0.92 percent of taxable wages, of which 71.52 percent is allocated to employees and 28.48 percent is allocated to employers, except employers with fewer than 50 employees are not required to pay the premium.
On September 30 of each year, the ESD calculates the size of each employer for purposes of the following calendar year by averaging the number of employees reported by the employer over the last four completed calendar quarters. The calculation is used for determining whether an employer is required to pay the employer portion of the premium and whether the employer qualifies for a small business grant.
Employment Protection. An employer with 50 or more employees is required to restore an eligible employee to an equivalent position with equivalent pay and benefits upon returning from leave in the PFML Program, often referred to as "employment protection" or "employment restoration." For an employee to qualify for employment protection, the employee must have worked for the employer for at least 12 months and for 1,250 hours in the year before the first day they used paid leave benefits. If the employer has opted to use an approved employer-managed voluntary plan for paid family and medical leave, then employment protection must be given to any employee who has worked for the employer for at least nine months and for at least 965 hours in the previous year.
An employer may deny employment protection to any salaried employee who is among the highest paid 10 percent of the employees employed by the employer within 75 miles of the facility at which the employee is employed if certain conditions are satisfied.
Health Care Coverage. If the federal Family and Medical Leave Act (FMLA) requires the employer to maintain health care coverage during any period in which an eligible employee uses paid or family medical leave benefits in the PFML Program, then state law also requires the employer to maintain the coverage during the employee's leave. If the employer and employee share the cost of the existing health benefits, the employee remains responsible for their share of the cost.
Small Business Grants. Employers with 150 or fewer employees may apply for a grant through the ESD. The amount of the grant varies, as follows:
An employer may not receive types of both grants, except that an employer who received a wage-related costs grant may receive a grant of the difference between wage-related costs grant and $3,000 if the employee extended their leave beyond what was initially planned, and the employer subsequently hired a temporary worker for the employee on leave. An employer may apply for a grant no more than 10 times per calendar year and no more than once for each employee on leave. If an employer with fewer than 50 employees receives a grant, the ESD must assess the employer for all premiums for three years.
Outreach. The ESD must conduct outreach to ensure that eligible employees are made aware of the PFML Program. Employers are also required to inform employees about the PFML Program by posting certain notices developed by the ESD. Employers may also provide an optional paystub insert developed by the ESD.
Enforcement. The ESD may inspect and audit employer files and records relating to the PFML Program. The ESD is authorized to conduct certain enforcement actions to ensure compliance with PFML Program requirements.
Federal Family and Medical Leave Act.
The FMLA allows an eligible employee to take up to 12 weeks of job-protected, unpaid leave in a 12-month period for a qualifying reason. Eligible employees are also entitled to continuing health care benefits. The FMLA applies to employees who have worked for a private employer with 50 or more employees or for a public employer, and have worked for the employer for at least 12 months and for at least 1,250 hours during the previous 12 months. Upon return from leave, the employee is entitled to be returned to the same or an equivalent position.
State law provides that leave taken under the PFML Program must be taken concurrently with leave under the FMLA, unless an employer permits otherwise.
Washington Paid Family and Medical Leave Program.
Benefits. The minimum claim period to qualify for benefits is reduced to four consecutive hours.
Employment Protection. The standards for employment protection are modified. All employers are required to provide employment protection to eligible employees, rather than limiting the requirement to employers with a minimum number of employees.
The minimum hourly threshold for qualifying for employment protection is removed. Instead, to qualify for protection, an employee must have begun employment with their current employer for at least 90 calendar days before taking leave. This applies to both to employers participating in the PFML Program, and also to those opting to use approved voluntary plans.
Employment protection is extended to any period of unpaid leave protected by the FMLA where the employee was eligible for PFML Program benefits but did not apply for and receive those benefits, so long as the employer provides certain written notices to the employee. The written notices must include certain elements identified in the bill, including that the leave is counting against any permitted period of employment protection under the PFML Program and the FMLA, and that the use of unpaid leave does not affect the employee's eligibility for benefits in the PFML Program.
Maximum periods of employment protection are established. Except by written agreement between the employer and employee or a bargaining unit, the employee forfeits the right to employment restoration if the employee does not exercise it upon the earlier of the:
For leave extending certain periods, the employer must provide at least five business days advance written notice to the employee regarding the estimated expiration of employment protection and the date of the employee's first scheduled work day.
Health Care Coverage. The requirement for employers to maintain health care coverage is expanded. Employers must maintain an employee's health care coverage during any period of leave in the PFML Program in which the employee is also entitled to employment protection.
Small Business Grants. The eligibility criteria and requirements for the current small business grants are modified to apply only to employers with 50 to 150 employees.
The bill establishes two types of grants for employers with fewer than 50 employees:
An employer must submit a grant application no later than 12 months after the employee's first day of leave. The ESD must submit payment to the employer within 14 calendar days after receiving a qualifying application. For each type of grant, the employer may not receive it more than 10 times per calendar year and more than once per employee. The ESD must assess any employer who receives one or more of these grants for all premiums for three years from the date of receipt of a grant. The ESD must send employers certain notices and publish information on its website regarding grant eligibility.
Employer Size Calculations. The method by which the ESD calculates the size of an employer for purposes of premium requirements and grant eligibility is modified. On September 30 of each year, the ESD must average the number of employees reported by an employer on the last day of each quarter over the last four completed calendar quarters.
Outreach. The ESD must conduct regular outreach to employers regarding their responsibilities in the PFML Program. The written statement of employee rights and posters distributed and posted by employers must include explain certain elements provided in the bill.
Enforcement. The ESD may conduct periodic audits of employer files and records for the purposes of assisting with and otherwise enforcing compliance. To that end, the ESD may require the employer to collect and report information on the exercise of employment protection rights.
The substitute bill authorizes the ESD to conduct periodic audits of employer files and records (rather than requiring those audits as provided in the underlying bill).
The substitute bill modifies the method by which the ESD calculates the size of an employer for purposes of premium requirements and grant eligibility by providing that the ESD must average the number of employees reported by an employer on the last day of each quarter over the last four completed calendar quarters.
The substitute bill adds provisions modifying small business grants. It limits the current eligibility and requirements for small business grants to employers with 50 to 150 employees, and then creates two new types of grants for employers with fewer than 50 employees: (1) a $3,000 grant to cover certain costs for hiring a temporary worker or significant additional wage-related costs; and (2) variable grant to cover the costs of health care benefits paid by the employer during an employee's leave, subject to certain limitations. The substitute bill establishes additional requirements for employers' application and receipt of grants and for ESD's processing of applications and payments.
(In support) Washington was one of the first states in the country to establish a PFML Program. But since other states have adopted their own programs, Washington is now behind in the employment protection standards offered to its workers. The Legislature recently funded a study through the University of Washington to examine the impacts of limited employment protection, and it found that workers are less likely to use leave and more likely to lose their jobs without these protections in place. Paid leave still remains out of reach for many workers. There are significant impacts to lower wage earners and also to vulnerable populations. The bill expands employment protection to workers with all employers, requiring 90 days of continuous employment. This expansion is critical to ensuring workers are able to access the benefits that they are paying for through their premium contributions. The bill will foster fairness and dignity in the workforce, and it will strengthen the economy through providing critical job security. Washington should send a message about the value of all workers.
(Opposed) Businesses and employers support the PFML Program. The destacking provisions implement the original intent of those who were involved in developing the PFML Program. But this change does not offset the costs of expanding employment protection across all employers and lowering the thresholds for eligibility. The bill will pose significant costs to small businesses and may create disincentives for providing health care coverage. The bill also creates extra burdens on local governments, particularly for positions requiring probationary periods and training in the first year. The bill creates a situation where a worker on probation may still go on extended protected leave. The study conducted through the University of Washington did not establish a causal relationship between employment protection and use of leave, and it did not assess the impacts to small businesses. There is a reason why small employers are exempt from the FMLA. This is too much for businesses that are already struggling. The state should be careful with expanding a program that is having solvency issues.
(In support) Representative Liz Berry, prime sponsor; Maggie Humphreys, MomsRising; Margarita Mota, MomsRising & MamásConPoder; Nich Gullickson, WA State Council of Firefighters; Gabriela Quintana, Economic Opportunity Institute & the WA Work & Family Coalition; Taylor Farley, Queer Power Alliance; Dan McKisson, ILWU Washington Area District Council; and Ashley Cox.
The Appropriations Committee recommends:
(In support) This bill contains important equity fixes for the Paid Family & Medical Leave program. It is important to note that around 70 percent of the premiums paid into the program account come from workers, not employers. Nearly half of those workers paying into the program have met the eligibility criteria for program benefits but are unable to take the leave due to lack of job protections. This bill would represent a major win for working families. Since premiums will pay for changes in the program itself while having nominal changes themselves, there will be no impact to the State's General Fund.
(Opposed) One of the largest members of the Washington Food Industry Association has reported that they estimate a 16 percent increase in the prices of groceries because of this bill and that these increases will likely have an impact throughout the entire food supply chain, raising prices at even smaller vendors across the state. Additionally, provisions in the bill related to eligibility for benefits after 90 days of working for a current employer will have negative impacts on businesses where there are probationary periods and job certification requirements for certain roles. If an individual takes leave before completing the training requirements of their role, then the training will have to be restarted upon their return from leave.
The intent of the program is to balance the needs of workers with the challenges that small local businesses face. Therefore, the new requirements should be reasonably balanced to help small businesses thrive. However, the provisions of the bill are not reasonable, and the bill remains a work in progress. As it stands, this bill has serious consequences for families who own and operate businesses across the state.
There are problems with the current program such as, lack of fraud protections, lack of a mechanism to recoup overpayments, program account solvency issues, and the impending event of the premium rates for the program hitting and remaining at its statutory maximum. The program's account is only solvent right now because of a $200 million cash infusion from the General Fund by the Legislature in 2023. Such issues should be addressed first before making more changes to the program that will cost the state, employers, and employees more money. This bill will result in one of two outcomes. Either the program will require another bail out from the General Fund, or the statutory premium rate cap will need to be increased to charge employers and employees more to keep the program account solvent.
(In support) Maggie Humphreys, MomsRising.